Zipmex Suspends Trading in Thailand to Comply with Regulations

Crypto exchange Zipmex has decided to suspend all digital asset trading and deposits in Thailand as part of its commitment to comply with local regulations. The company, in a statement on November 25, explained that the move is a temporary suspension of operations to align with the criteria set by the Securities and Exchange Commission (SEC) in Thailand. This suspension, effective immediately from 1:00 PM local time onwards, is intended to ensure that Zipmex’s business operations are in accordance with regulatory requirements. Customers seeking to withdraw funds or assets after January 31, 2024, are advised to directly contact Zipmex’s Customer Support.

Challenges Faced

The decision to suspend trading follows a series of challenges faced by Zipmex, including delayed payments to customers on April 18, with the exchange citing an attempt to “maximize returns.” Subsequently, Zipmex sought an extension for a longer moratorium on its debt in Singapore due to liquidity issues.

Earlier in the year, on January 10, Zipmex became the subject of an SEC investigation in Thailand for a potential breach of local rules. The SEC gave the exchange one day to confirm or deny allegations of operating as an unauthorized digital asset fund manager. The SEC had been investigating Zipmex since September 2022. The exchange was accused of failing to provide information on digital wallets and crypto transactions in line with the country’s Digital Assets Act.

Closing Thoughts

The suspension of Zipmex’s trading activities in Thailand raises questions about the reasons behind this decision. While the statement emphasizes regulatory alignment and compliance during heightened scrutiny from the Thai SEC, the impact on Thailand’s cryptocurrency sector is uncertain, considering Zipmex’s significance in the market. Other exchanges in the country continue to operate normally, although the regulatory landscape remains uncertain amid the SEC’s ongoing efforts to regulate digital asset companies.

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